I don't use Debit or Credit

[Ithanul]

55K, 1/3 in stock investments, 1/3 in IRA/ROTH retirement fund, 1/3 in physical gold/silver.

 

Of course you could do my route: stocks, ROTH and Traditional, physical assets, gold and silver, and some cash on hand.  One phrase I go by that my Dad told me:  never put all your eggs in one basket.

[AshleyAshes]

2 hours ago, dalekphalm said:

Sure a physical mattress might be very unusual these days, but consider that a regular chequing account (or even a savings account) generally pays 0% interest - especially if you don't have some ridiculously high balance (Seriously, some banks will pay like 0.5% interest if you've got $10,000 or more sitting in your savings account, but 0% if you have less - and frankly, 0.5% is an insult).

 

So letting all your money sit in a regular bank account without actually investing it is the digital equivalent of stuffing it in a mattress.

I still think that the fact that physical cash is basically not covered by home insurance is a much bigger problem than the money failing to college interest.

 

There's a reason why when the fire alarm goes off, I only grab my shoes, keys, my phone and my cat.  Because everything is insured but cash wouldn't be.  I'd rather know that my bank card melted in a blaze than know that $55k 'vanished' into smoke.  Sure, the Bank of Canada runs a 'mutilated-note redemption service' and it's free, but that's hoping that the bills aren't so damaged that they can't be recognized in a lab.  With Canada's current polymer bills and a sufficiently intense blaze, your pile of cash could be a burnt crusty pool of polymer residue. =X  Just waaaaaay too many 'Maybes' and 'Hopefullys' in that scenario for me.

[Unhelpful]

2 hours ago, dalekphalm said:

In some cases, you can expect returns much higher than 2% as well

Fucking index funds man.

[Monte_Carlo]

I'd say just open a bank account.  I haven't used my debit card in a while now.  I prefer credit since it tends to have more protections, and the bonus points/awards I earn is a great way to stretching the dollar.  

[christianled59]

Bury it in the desert and threaten your rich neighbor who stole your company to give it to your son when he graduates.

[christianled59]

Seriously though, does it need to be liquid funds? I don't see why you don't just keep it in a bank account or in a bunch of low low risk investments. Otherwise, if you don't really need access to the money whatsoever, buy gold. That way it'll never really decrease in value, so if there's another huge recession or even a depression, once things clear up you'll still have money.